8-K
Caseys General Stores Inc (CASY)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 6, 2022
CASEY'S GENERAL STORES, INC.
(Exact name of registrant as specified in its charter)
| Iowa | |
|---|---|
| (State or other jurisdiction of incorporation) | |
| 001-34700 | 42-0935283 |
| (Commission File Number) | (I.R.S. Employer Identification Number) |
One SE Convenience Blvd., Ankeny, Iowa
(Address of principal executive offices)
50021
(Zip Code)
515/965-6100
(Registrant's telephone number, including area code)
NONE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, no par value per share | CASY | The NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 2.02. Results of Operations and Financial Condition.
On December 6, 2022, Casey's General Stores, Inc. (the "Company") issued a press release announcing its financial results for the second quarter ended October 31, 2022 (the "Press Release"). A copy of the Company's Press Release is attached as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release issued by Casey's General Stores, Inc. datedDecember 6, 2022 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| CASEY'S GENERAL STORES, INC. | ||
|---|---|---|
| Dated: December 6, 2022 | By: | /s/ Stephen P. Bramlage Jr. |
| Stephen P. Bramlage Jr. | ||
| Chief Financial Officer |
Document
Exhibit 99.1
| FOR IMMEDIATE RELEASE |
|---|
| Casey’s General Stores, Inc. |
| One SE Convenience Blvd |
| Ankeny, IA 50021 |
Casey's Announces Second Quarter Results; Updates Fiscal 2023 Outlook
Ankeny, IA, December 6, 2022 - Casey’s General Stores, Inc. ("Casey's" or the "Company") (Nasdaq: CASY) a leading convenience store chain in the United States, today announced financial results for the three and six months ended October 31, 2022.
Second Quarter Key Highlights
•Diluted EPS of $3.67, up 42% from the same period a year ago.
•Inside same-store sales increased 7.9% compared to prior year, and 14.4% on a two-year stack basis, with an inside margin of 39.8%. Total inside gross profit increased 8.9% to $504.5 million compared to the prior year.
•Same-store fuel gallons were up 0.3% compared to prior year with a fuel margin of 40.5 cents per gallon. Total fuel gross profit increased 22.7% to $284.4 million compared to the prior year.
•Same-store operating expense excluding credit card fees were up 1.3%, favorably impacted by a 3% reduction in same-store labor hours.
•The Company is updating its Fiscal 2023 Outlook due to improved inside sales and operating expense performance.
“Thanks to our entire team, Casey's delivered another excellent quarter by growing inside sales while driving efficiency throughout the business,” said Darren Rebelez, President and CEO. “Inside same-store sales were driven by prepared food and dispensed beverages, most notably pizza and fountain sales. Grocery and general merchandise achieved impressive results in both alcoholic and non-alcoholic beverages. The fuel gross profit dollars remained strong as our fuel team executed at a high level again and struck the right balance between sales volume and gross profit margin. The resiliency of our business model along with the ability to effectively execute on our long-term strategic plan continues to drive shareholder value.”
Earnings
| Three Months Ended October 31, | Six Months Ended October 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||
| Net income (in thousands) | $ | 137,555 | $ | 96,831 | $ | 290,487 | $ | 215,990 |
| Diluted earnings per share | $ | 3.67 | $ | 2.59 | $ | 7.75 | $ | 5.78 |
| Adjusted EBITDA (in thousands) | $ | 276,296 | $ | 217,009 | $ | 569,505 | $ | 460,198 |
Net income, diluted EPS, and Adjusted EBITDA (reconciled later in the document), were up compared to the same period a year ago as higher profitability both inside the store and in fuel was partially offset by higher operating expenses due to operating 83 additional stores, as well as increased credit card fees resulting from the higher retail price of fuel.
Inside
| Three Months Ended October 31, | Six Months Ended October 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Inside sales (in thousands) | $ | 1,268,436 | $ | 1,138,988 | $ | 2,535,053 | $ | 2,282,913 | ||||
| Inside same-store sales | 7.9 | % | 6.0 | % | 7.0 | % | 7.0 | % | ||||
| Grocery and general merchandise same-store sales | 6.9 | % | 6.8 | % | 6.1 | % | 6.9 | % | ||||
| Prepared food and dispensed beverage same-store sales | 10.5 | % | 4.1 | % | 9.4 | % | 7.3 | % | ||||
| Inside gross profit (in thousands) | $ | 504,474 | $ | 463,438 | $ | 1,008,734 | $ | 926,952 | ||||
| Inside margin | 39.8 | % | 40.7 | % | 39.8 | % | 40.6 | % | ||||
| Grocery and general merchandise margin | 33.3 | % | 33.3 | % | 33.6 | % | 33.1 | % | ||||
| Prepared food and dispensed beverage margin | 56.7 | % | 60.6 | % | 56.2 | % | 60.8 | % |
Total inside sales were up 11.4% for the quarter driven by strong performance in prepared food items including both pizza slices and whole pies, as well as non-alcoholic and alcoholic beverages, snacks and candy from the grocery and general merchandise category. Inside margin was down 90 basis points compared to the same quarter a year ago. Grocery and general merchandise margin was consistent with the prior year, while higher prepared food and dispensed beverage ingredient costs, notably cheese, partially offset by price adjustments, continued to pressure gross profit margin relative to the prior year.
Fuel1
| Three Months Ended October 31, | Six Months Ended October 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Fuel gallons sold (in thousands) | 702,043 | 668,757 | 1,391,510 | 1,336,291 | ||||||||
| Same-store gallons sold | 0.3 | % | 2.5 | % | (1.2) | % | 5.6 | % | ||||
| Fuel gross profit (in thousands) | $ | 284,407 | $ | 231,883 | $ | 592,595 | $ | 466,358 | ||||
| Fuel margin (cents per gallon, excluding credit card fees) | 40.5 | ¢ | 34.7 | ¢ | 42.6 | ¢ | 34.9 | ¢ |
Total gallons increased 5.0% compared to the prior year due to the store count increase while same-store gallons sold were up 0.3% versus the prior year. The Company’s total fuel gross profit was up 22.7% versus the prior year, favorably impacted by higher cents per gallon. The Company sold $11.1 million in renewable fuel credits (RINs) in the second quarter, an increase of $4.8 million from the same quarter in the prior year.
Operating Expenses
| Three Months Ended October 31, | Six Months Ended October 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Operating expenses (in thousands) | $ | 539,207 | $ | 500,644 | $ | 1,082,478 | $ | 979,572 | ||||
| Credit card fees (in thousands) | $ | 60,469 | $ | 52,072 | $ | 127,696 | $ | 101,515 | ||||
| Same-store operating expense excluding credit card fees | 1.3 | % | 8.3 | % | 1.9 | % | 12.7 | % |
Operating expenses increased 7.7% during the second quarter. Over 2% of the increase is due to operating 83 more stores than prior year and over 1% of the change is related to an increase in same-store credit card fees from higher retail fuel prices. Approximately 1% of the increase was due to a non-cash impairment charge and approximately 1% of the increase is from internal fuel expense related to grocery self-distribution. Same-store operating expense excluding credit card fees was also up 1.3%, benefited by a 3% reduction in same-store hours.
1 Fuel category does not include wholesale fuel activity, which is included in Other.
Expansion
| Store Count | |
|---|---|
| Stores at 4/30/2022 | 2,452 |
| New store construction | 9 |
| Acquisitions | 3 |
| Acquisitions not opened | (2) |
| Prior acquisitions opened | 2 |
| Closed | (1) |
| Stores at 10/31/2022 | 2,463 |
Liquidity
At October 31, 2022, the Company had approximately $884 million in available liquidity, consisting of approximately $415 million in cash and cash equivalents on hand and $469 million in undrawn borrowing capacity on existing lines of credit.
Share Repurchase
The Company has $400 million remaining under its existing share repurchase authorization. There were no repurchases made against that authorization in the second quarter.
Dividend
At its December meeting, the Board of Directors voted to pay a quarterly dividend of $0.38 per share. The dividend is payable February 15, 2023 to shareholders of record on February 1, 2023.
Fiscal 2023 Outlook
Due to the strong year-to-date performance the Company is modifying its fiscal 2023 outlook. The Company now expects same-store inside sales to be approximately 5% to 7%. Total operating expense increase is expected to be near the low end of the annual range which was approximately 9% to 10%. The tax rate is now expected to be between approximately 24% and 25% for the year.
The Company is not updating its outlook for the following metrics. Inside margin is expected to be approximately 40%. The Company expects same-store fuel gallons to be flat to 2% higher. The Company expects to add approximately 80 stores in fiscal 2023, and expects to exceed our stated three year commitment of 345 units. Interest expense is expected to be approximately $55 million. Depreciation and amortization is expected to be approximately $320 million and the purchase of property plant and equipment is expected to be approximately $450 to $500 million, including approximately $135 million in one-time store remodel costs for recently acquired stores.
Casey’s General Stores, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Dollars in thousands, except share and per share amounts)
(Unaudited)
| Three Months Ended October 31, | Six Months Ended October 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||
| Total revenue | $ | 3,978,575 | $ | 3,262,942 | $ | 8,433,219 | $ | 6,444,935 |
| Cost of goods sold (exclusive of depreciation and amortization, shown separately below) | 3,167,633 | 2,545,352 | 6,786,027 | 5,003,458 | ||||
| Operating expenses | 539,207 | 500,644 | 1,082,478 | 979,572 | ||||
| Depreciation and amortization | 78,117 | 74,258 | 154,412 | 150,146 | ||||
| Interest, net | 13,502 | 13,520 | 27,318 | 27,250 | ||||
| Income before income taxes | 180,116 | 129,168 | 382,984 | 284,509 | ||||
| Federal and state income taxes | 42,561 | 32,337 | 92,497 | 68,519 | ||||
| Net income | $ | 137,555 | $ | 96,831 | $ | 290,487 | $ | 215,990 |
| Net income per common share | ||||||||
| Basic | $ | 3.69 | $ | 2.61 | $ | 7.80 | $ | 5.81 |
| Diluted | $ | 3.67 | $ | 2.59 | $ | 7.75 | $ | 5.78 |
| Basic weighted average shares | 37,277,080 | 37,162,984 | 37,250,580 | 37,144,744 | ||||
| Plus effect of stock compensation | 246,679 | 205,669 | 215,335 | 205,669 | ||||
| Diluted weighted average shares | 37,523,759 | 37,368,653 | 37,465,915 | 37,350,413 |
Casey’s General Stores, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
| October 31, 2022 | April 30, 2022 | |||
|---|---|---|---|---|
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | $ | 414,798 | $ | 158,878 |
| Receivables | 157,491 | 108,028 | ||
| Inventories | 393,320 | 396,199 | ||
| Prepaid expenses | 27,734 | 17,859 | ||
| Income taxes receivable | — | 44,071 | ||
| Total current assets | 993,343 | 725,035 | ||
| Other assets, net of amortization | 177,593 | 187,219 | ||
| Goodwill | 612,934 | 612,934 | ||
| Property and equipment, net of accumulated depreciation of $2,530,393 at October 31, 2022 and $2,425,709 at April 30, 2022 | 4,006,594 | 3,980,542 | ||
| Total assets | $ | 5,790,464 | $ | 5,505,730 |
| Liabilities and Shareholders’ Equity | ||||
| Current liabilities | ||||
| Current maturities of long-term debt and finance lease obligations | $ | 33,996 | $ | 24,466 |
| Accounts payable | 587,030 | 588,783 | ||
| Accrued expenses | 298,962 | 291,429 | ||
| Income taxes payable | 1,310 | — | ||
| Total current liabilities | 921,298 | 904,678 | ||
| Long-term debt and finance lease obligations, net of current maturities | 1,639,580 | 1,663,403 | ||
| Deferred income taxes | 545,756 | 520,472 | ||
| Deferred compensation | 11,668 | 12,746 | ||
| Insurance accruals, net of current portion | 29,816 | 27,957 | ||
| Other long-term liabilities | 129,530 | 135,636 | ||
| Total liabilities | 3,277,648 | 3,264,892 | ||
| Total shareholders’ equity | 2,512,816 | 2,240,838 | ||
| Total liabilities and shareholders’ equity | $ | 5,790,464 | $ | 5,505,730 |
Casey’s General Stores, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
| Six months ended October 31, | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Cash flows from operating activities: | ||||
| Net income | $ | 290,487 | $ | 215,990 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 154,412 | 150,146 | ||
| Amortization of debt issuance costs | 691 | 717 | ||
| Share-based compensation | 25,875 | 17,500 | ||
| Loss (gain) on disposal of assets and impairment charges | 4,791 | (1,707) | ||
| Deferred income taxes | 25,284 | 58,073 | ||
| Changes in assets and liabilities: | ||||
| Receivables | (49,463) | (8,087) | ||
| Inventories | 3,023 | (39,531) | ||
| Prepaid expenses | (9,875) | (13,698) | ||
| Accounts payable | (14,330) | 87,831 | ||
| Accrued expenses | 6,224 | (6,134) | ||
| Income taxes | 46,707 | (6,898) | ||
| Other, net | 2,273 | 1,175 | ||
| Net cash provided by operating activities | 486,099 | 455,377 | ||
| Cash flows from investing activities: | ||||
| Purchase of property and equipment | (177,327) | (123,518) | ||
| Payments for acquisition of businesses, net of cash acquired | (2,692) | (626,126) | ||
| Proceeds from sales of assets | 10,052 | 21,890 | ||
| Net cash used in investing activities | (169,967) | (727,754) | ||
| Cash flows from financing activities: | ||||
| Proceeds from long-term debt | — | 300,000 | ||
| Payments of long-term debt | (17,302) | (9,750) | ||
| Payments of debt issuance costs | — | (249) | ||
| Proceeds from exercise of stock options | — | 133 | ||
| Payments of cash dividends | (27,292) | (25,234) | ||
| Tax withholdings on employee share-based awards | (15,618) | (17,370) | ||
| Net cash (used in) provided by financing activities | (60,212) | 247,530 | ||
| Net increase (decrease) in cash and cash equivalents | 255,920 | (24,847) | ||
| --- | --- | --- | --- | --- |
| Cash and cash equivalents at beginning of the period | 158,878 | 336,545 | ||
| Cash and cash equivalents at end of the period | $ | 414,798 | $ | 311,698 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
| Six months ended October 31, | ||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
| Cash paid during the period for: | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest, net of amount capitalized | $ | 25,077 | $ | 25,076 | ||||||||||||||||||||||||||||||||||||||||||
| Income taxes, net | 17,696 | 14,937 | ||||||||||||||||||||||||||||||||||||||||||||
| Noncash investing and financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||
| Purchased property and equipment in accounts payable | 59,236 | 50,713 | ||||||||||||||||||||||||||||||||||||||||||||
| Right-of-use assets obtained in exchange for new finance lease liabilities | 2,119 | 47,775 | ||||||||||||||||||||||||||||||||||||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | 1,163 | 40,944 | ||||||||||||||||||||||||||||||||||||||||||||
| Summary by Category (Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||||||||||||||||
| Three months ended October 31, 2022 | Fuel | Grocery & General<br>Merchandise | Prepared Food & Dispensed Beverage | Other | Total | |||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 2,635,920 | $ | 917,176 | $ | 351,260 | $ | 74,219 | $ | 3,978,575 | ||||||||||||||||||||||||||||||||||||
| Gross profit | $ | 284,407 | $ | 305,250 | $ | 199,224 | $ | 22,061 | $ | 810,942 | ||||||||||||||||||||||||||||||||||||
| 10.8 | % | 33.3 | % | 56.7 | % | 29.7 | % | 20.4 | % | |||||||||||||||||||||||||||||||||||||
| Fuel gallons sold | 702,043 | |||||||||||||||||||||||||||||||||||||||||||||
| Three months ended October 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 2,048,831 | $ | 829,484 | $ | 309,504 | $ | 75,123 | $ | 3,262,942 | ||||||||||||||||||||||||||||||||||||
| Gross profit | $ | 231,883 | $ | 275,940 | $ | 187,498 | $ | 22,269 | $ | 717,590 | ||||||||||||||||||||||||||||||||||||
| 11.3 | % | 33.3 | % | 60.6 | % | 29.6 | % | 22.0 | % | |||||||||||||||||||||||||||||||||||||
| Fuel gallons sold | 668,757 | Summary by Category (Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||||||||||||||||
| Six Months Ended October 31, 2022 | Fuel | Grocery & General<br>Merchandise | Prepared Food & Dispensed Beverage | Other | Total | |||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 5,732,262 | $ | 1,840,240 | $ | 694,813 | $ | 165,904 | $ | 8,433,219 | ||||||||||||||||||||||||||||||||||||
| Gross profit | $ | 592,595 | $ | 618,557 | $ | 390,177 | $ | 45,863 | $ | 1,647,192 | ||||||||||||||||||||||||||||||||||||
| 10.3 | % | 33.6 | % | 56.2 | % | 27.6 | % | 19.5 | % | |||||||||||||||||||||||||||||||||||||
| Fuel gallons sold | 1,391,510 | |||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended October 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 4,015,986 | $ | 1,664,969 | $ | 617,944 | $ | 146,036 | $ | 6,444,935 | ||||||||||||||||||||||||||||||||||||
| Gross profit | $ | 466,358 | $ | 551,348 | $ | 375,604 | $ | 48,167 | $ | 1,441,477 | ||||||||||||||||||||||||||||||||||||
| 11.6 | % | 33.1 | % | 60.8 | % | 33.0 | % | 22.4 | % | |||||||||||||||||||||||||||||||||||||
| Fuel gallons sold | 1,336,291 | |||||||||||||||||||||||||||||||||||||||||||||
| Fuel Gallons | Fuel Margin | |||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||||
| Same-store Sales | (Cents per gallon, excluding credit card fees) | |||||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Fiscal<br>Year | Q1 | Q2 | Q3 | Q4 | Fiscal<br>Year | |||||||||||||||||||||||||||||||||||||
| F2023 | (2.3) | % | 0.3 | % | — | — | — | F2023 | 44.7 | ¢ | 40.5 | ¢ | — | — | — | |||||||||||||||||||||||||||||||
| F2022 | 9.0 | 2.5 | 5.7 | % | 1.5 | % | 4.4 | % | F2022 | 35.1 | 34.7 | 38.3 | ¢ | 36.2 | ¢ | 36.0 | ¢ | |||||||||||||||||||||||||||||
| F2021 | (14.6) | (8.6) | (12.1) | 6.4 | (8.1) | F2021 | 38.2 | 35.3 | 32.9 | 33.0 | 34.9 | Grocery & General Merchandise | Grocery & General Merchandise | |||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||||
| Same-store Sales | Margin | |||||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Fiscal<br>Year | Q1 | Q2 | Q3 | Q4 | Fiscal<br>Year | |||||||||||||||||||||||||||||||||||||
| F2023 | 5.5 | % | 6.9 | % | — | — | — | F2023 | 33.9 | % | 33.3 | % | — | — | — | |||||||||||||||||||||||||||||||
| F2022 | 7.0 | 6.8 | 7.7 | % | 4.3 | % | 6.3 | % | F2022 | 33.0 | 33.3 | 32.0 | % | 32.5 | % | 32.7 | % | |||||||||||||||||||||||||||||
| F2021 | 3.6 | 6.6 | 5.4 | 12.5 | 6.6 | F2021 | 32.2 | 33.3 | 30.7 | 31.8 | 32.0 | Prepared Food & Dispensed Beverage | Prepared Food & Dispensed Beverage | |||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||||
| Same-store Sales | Margin | |||||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Fiscal<br>Year | Q1 | Q2 | Q3 | Q4 | Fiscal<br>Year | |||||||||||||||||||||||||||||||||||||
| F2023 | 8.4 | % | 10.5 | % | — | — | — | F2023 | 55.6 | % | 56.7 | % | — | — | — | |||||||||||||||||||||||||||||||
| F2022 | 10.8 | 4.1 | 7.4 | % | 7.6 | % | 7.4 | % | F2022 | 61.0 | 60.6 | 58.0 | % | 56.9 | % | 59.2 | % | |||||||||||||||||||||||||||||
| F2021 | (9.8) | (3.6) | (5.0) | 13.4 | (2.1) | F2021 | 59.7 | 60.1 | 60.6 | 60.1 | 60.1 |
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets as well as impairment charges. Neither EBITDA nor Adjusted EBITDA are considered GAAP measures, and should not be considered as a substitute for net income, cash flows from operating activities or other income or cash flow statement data. These measures have limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
We believe EBITDA and Adjusted EBITDA are useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities, and they are regularly used by the Company for internal purposes including our capital budgeting process, evaluating acquisition targets, assessing performance, and awarding incentive compensation.
Because non-GAAP financial measures are not standardized, EBITDA and Adjusted EBITDA, as defined by us, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare our use of these non-GAAP financial measures with those used by other companies.
The following table contains a reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended October 31, 2022 and 2021:
| (in thousands) | Three Months Ended October 31, | Six Months Ended October 31, | ||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||
| Net income | $ | 137,555 | $ | 96,831 | $ | 290,487 | $ | 215,990 |
| Interest, net | 13,502 | 13,520 | 27,318 | 27,250 | ||||
| Federal and state income taxes | 42,561 | 32,337 | 92,497 | 68,519 | ||||
| Depreciation and amortization | 78,117 | 74,258 | 154,412 | 150,146 | ||||
| EBITDA | 271,735 | 216,946 | 564,714 | 461,905 | ||||
| Loss (gain) on disposal of assets and impairment charges | 4,561 | 63 | 4,791 | (1,707) | ||||
| Adjusted EBITDA | $ | 276,296 | $ | 217,009 | $ | 569,505 | $ | 460,198 |
NOTES:
•Gross Profit is defined as revenue less cost of goods sold (exclusive of depreciation and amortization)
•Inside is defined as the combination of Grocery and General Merchandise and Prepared Food and Dispensed Beverage
This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities, performance at our stores. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any results expressed or implied by these forward-looking statements, including but not limited to the execution of our strategic plan, the integration and financial performance of acquired stores, wholesale fuel, inventory and ingredient costs, distribution challenges and disruptions, the impact and duration of COVID-19 and related governmental actions, the impact and duration of the conflict in Ukraine or other geopolitical disruptions, as well as other risks, uncertainties and factors which are described in the Company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission and available on our website. Any forward-looking statements contained in this release represent our current views as of the date of this release with respect to future events, and Casey’s disclaims any intention or obligation to update or revise any forward-looking statements in the release whether as a result of new information, future events, or otherwise.
Corporate information is available at this website: https://www.caseys.com. Earnings will be reported during a conference call on December 7, 2022. The call will be broadcast live over the Internet at 7:30 a.m. CST. To access the call, go to the Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx. No access code is required. A webcast replay of the call will remain available in an archived format on the Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx for one year after the call.
| Investor Relations Contact: | Media Relations Contact: |
|---|---|
| Brian Johnson (515) 965-6587 | Katie Petru (515) 446-6772 |